In the era of eCommerce giants like Amazon and Alibaba, which are always aiming to be faster and cheaper than other companies, smaller companies are constantly feeling pressured to change the way they operate.
As these big players are even developing their own distribution strategy, smaller retailers around the world are starting to face challenges when deciding how to manage their deliveries, and are being forced to improve their overall delivery logistics strategy.
Last-mile delivery challenges
But competitors aside, if we think about the last-mile sector itself, we can easily pinpoint a few extra challenges it faces today. Among the most important ones are inefficient operations and speed of delivery. Why? As online retail is booming, the volume of orders is on the rise, which implicitly creates a surge in last-minute deliveries and on-demand requests.
We live in a fast-paced digital world where online purchases and deliveries happen continuously. With big players which continuously change the pace of the e-commerce landscape by offering a wealth of options, consumers’ behaviour is also changing. Today, chances are as a digital shopper, you want to receive your delivery on the same day you placed it and that’s completely understandable.
But due to this unpredictable volume in orders, many small companies are faced with unprecedented challenges and can easily lose out in the long-run due to the inability to fully-utilize their available resources.
As retailers are facing these challenges, the immediate concern is deciding how to manage the delivery operations better. Build an in-house fleet or outsource it?
A renowned – and possible – solution would be the Uber example, which is known to have changed the way taxi sharing works by allowing drivers to become a part of their “fleet”. In other industries, smaller businesses will also apply this methods and look for similar solutions that provide them with the flexibility to manage their deliveries through a network of smaller partners.
So, build an in-house fleet or outsource it?
For many companies, being in full control of their operations is essential, which is why the idea of owning a fleet or even working exclusively with a delivery partner seems to be the desired solution. However, there are immediate limitations to this business model, such as relying on your own fleet reduces the chance of workforce growth as soon as the business demands it.
Many of the hurdles about choosing the right strategy for your delivery operations can be solved with tech that helps partner companies, partner fleets and partner drivers to operate successfully in an open and flexible environment.
With a smart centralized management system and leveraging a hybrid fleet, businesses would then be able to optimize operations whilst lowering costs. This new idea is opening up great opportunities, allowing companies to grow their business with an unprecedented level of freedom, flexibility and scalability.
Create a healthy driver ecosystem
With CarPal, last-mile can become a sustainable ecosystem where your very own fleet and partnerships with local delivery companies are successfully growing your delivery logistics. If properly managed, this scenario can offer companies the flexibility to scale their business needs and use multiple resources that fit increased demand across multiple locations.
Also, by tapping into a pool of freelance drivers, companies have the flexibility to take on new jobs without sacrificing their usual jobs due to exclusivity agreements.
Case study for company X
By allowing businesses to optimize the delivery orders and match the best available driver, you can bring delivery costs down and gain more control over your own delivery fleet as well as have the ability to tap into third-party drivers, without actually having to purchase any vehicles or hire additional staff.
During peak seasons or when facing increased on-demand requests, companies find it difficult to deal with the surge in orders so the challenge that arises is whether or not to hire full-time drivers.
With CarPal, companies can build a healthy last-mile ecosystem by expanding their networks and tap into our very own pool of 10,000 freelancer drivers to drive cost down. At the same time, drivers can fully utilize their time to take delivery jobs in a more consistent manner.
Tapping into another fleet will allow you to bring the delivery cost down, gain control over your own delivery fleet, and have the ability to tap into third-party drivers without having to purchase any vehicles or hire additional staff.
To implement this idea, companies will definitely to try new models based on what works for them better. That means using their own, internal fleets, external fleets, partner companies, and even crowd-sourced resources that can be aligned to reach customers in the best and most efficient way.